I have heard quite a bit of uproar about Chase charging customers a monthly fee of $10 ($120 a year) if they have an existing credit card with Chase that has a low interest rate. From what I hear it sounds like that also includes promotional rates too like balance transfer signup offers and special rates for "until paid in full" balances.

What load of bull is this? I want to know if this is applied to only those with bad credit or if they are doing it to everyone that has a low interest rate.

I could be wrong but I think they are only punishing those with promo low interest rates. If you have a low interest just because you have good credit and that's your normal rate I don't think they dock you. At least that's what I've heard so far...

My Chase VISA experience initiated a $10 fee and 5% minumum monthly after several transfers of 2.99% to 4.99%, all offered "until the balance is paid". I quit transferring when the transfer fee was no longer 3% or $50 (or $75 or $99)...now it's a flat 3% fee, $30 per $1,000 transferred. My credit utilization is usually high on this card, and this card only. Paying down higher interest first and pay Chase' 2% minimums seemed okay at such low rates, but 5% minimum is forcing me to pay this low interest first, AND the $10 monthly fee adds to a much higher percentage rate balance (to be paid later of course). Well, I'm keeping up, but there's got to be a point that I stop paying $120 annual for a card that I'll probably never use again, and closing this account would really crash my credit. Chase' alternative offer to me is waive $10 fee, 2% minimum payment, but all balances adjust to 7.99%. I was told that I have until the end of March '09 to accept, but it looks like they did it already anyway. I'm not proud of this situation, but I'm learning and paying. Somehow the banks still win though...

I never like balance transfer offers that charge a fixed rate like your 3% because they are collecting all that money up front. I don't know how they get away with this fee.

This transfer fee is pure profit on their part. So you pay the 3% transfer fee, but if rate is 4% you actually have a 7% interest rate. You may not be saving that much since all the money is paid up front vs. spread throughout year where you may actually lower your balance.

Indeed the $10 monthly fee is taking a no annual fee credit card and turning it into a Chase credit card with a $120 annual fee. Unless the balance is of an extremely high dollar value, and the interest rate is extremely low, there are probably better options out there to transfer balances. The difficulty with transferring balances now however is that what was considered an average balance previously, many creditors now look at as high, and hence, will now issue credit lines to new customers in that amount.

And yes, many do not consider the balance transfer fee thoroughly enough. If the balance transfer offer is only for 6 or 9 months and is above 0%, once you add in the 3% or 4% fee, there probably is little incentive in taking advantage of it.

Update to my Chase Visa with low (3-5%) balance transfers: Chase has credited the $10 fees, returned my minimum monthly to 2%, and left my interest rates unchanged! I did complain when my minimum was raised to 5%, forcing me to pay my lowest rate card first, but now they've reverted everything back for me and provided the following:

In reviewing your account, we discovered that you were incorrectly sent a Change in Terms notice this past November. As a result, you may have been charged a $10 monthly account service charge(s) and your minimum payment due was changed to 5% of your New Balance.

We have already taken action to correct the terms on your account. We have credited your account for the $10 monthly account service charge(s). With your next billing statement, your minimum payment due will revert to its previous calculation of either 2% of your New Balance or 1% of your New Balance plus billed interest and any billed late fees. In addition, we set your promotional rate balance(s)--with no defined expiration date--back to its original terms. As always, your account remains subject to all terms and conditions, including default APR actions, as outlined in your Cardmember Agreement.

Your satisfaction is important to us, and we apologize for the error and any inconvenience this issue may have caused you. If you have any questions, please call us....

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